Charging Sales Taxes on Used Items

[slidesnstuff]

Hello. Can anyone tell me what taxes I should be charging to domestic buyers for used items?
I sell used 35mm slides, photographes and other ephemera.
Should it be GST/HST, PST or both?
Up to now, I have not been charging tax and was willing to “eat” the tax come remittance. My domestic sales are higher than expected and the amount to remit will be substantial.

Thanks in advance!

[marnotom!]

Are you registered to collect BC PST and GST/HST?

[slidesnstuff]

Hi there. Yes, I have a GST number.

[momcqueen]

Use the tables that eBay has established.

[momcqueen · Accepted solution]

You’d want to confirm this with your accountant but I don’t expect ‘used’ items to be tax-free.

[slidesnstuff]

Thanks. I’m quite sure that GST should be applied to used items. It’s the various PSTs and HST is where it gets fuzzy. Cdn tax laws are really convoluted, depends what kind of used items you sell, etc. I’d be willing to eat 5-7% of Sales to cover taxes, but 12-14% is too much.

Guess it’s a question for the accountants.

Thank you.

[recped · Accepted solution]

Tax rates are not convoluted or fuzzy......no need for accountants!

The rates by Province can be found here:

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/rts-eng.html

Used goods are taxable at the same rates as new goods.

For sales within BC you charge GST and PST and have to register for both. For sales outside BC see the chart linked above, sales outside Canada are zero-rated for GST and exempt from BC Sales Tax.

You can absorb (hide) GST/HST if you want to but most retailers on or offline add taxes as a separate line item.

[slidesnstuff]

Thank you for the info. That is very helpful.

Best Regards.

[backpacktreasures]

Hello,

I am a Canadian seller selling to the US & Canada. I sell on ebay.com. I am not registered to collect sales tax. I noticed that in 1 of my sales and probably more and more from now on, that ebay left a note in the sales record, that  "This total includes tax that eBay is required to collect from your buyer. You can view the amount paid to you in the sales record." The buyer is from New Jersey. The tax is exactly the NJ sales tax rate. Ebay collected it automatically. Is this normal considering that I am Canadian? I do use a US P.O. box, but my Paypal address is Canadian.

Thank you.

[ypdc_dennis]

Since last year eBay collects sales tax for Australia (under $1000AU) and for a growing list of USA states. Collection by eBay is automatic (based on destination) and the Seller is not involved with the tax money (all handled by eBay).  It applies to sales made by all Sellers.

The USA tax list:

https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121#section4

[kh-leslie]

Hello Everyone,

Due to the age of the thread, it has been closed to further replies.  Please feel free to start a new thread if you wish to continue to discuss this topic.

Thanks for understanding!